Yesterday, Weitz Investment Management, Inc. launched the Weitz Multisector Bond ETF (WMSB). Representing a bet on growing advisor demand for flexible bond strategies among ETFs, the fixed income strategy is “designed to provide a high level of current income through flexible exposure across credit sectors, durations, and levels of credit quality,” per Weitz’s press release.
The fund can adjust its junk bond holdings from below 35% to more than 50% of the portfolio based on market conditions. This gives managers flexibility to hunt for opportunities across different credit qualities without being tied to an index, according to the prospectus.
The firm describes WMSB as a “broad-mandate fund with an opportunistic lens.” It provides flexibility across sectors, credit quality, and duration, targeting a 3.5- to 7-year duration. Additionally, it seeks non-investment-grade securities when the reward for risk is compelling.
“Advisors today are looking for flexibility — in both investment approach and product structure,” Jim Boyne, president of Weitz, said in the release.
Nolan Anderson, co-head of fixed income at Weitz, noted the fund is not tied to an index.
“We’re focused on identifying compelling risk-adjusted opportunities wherever they emerge,” he said. Tom Carney, the other co-head of fixed income manages the fund alongside him.
Bond ETF Strategy Details
The fund will invest at least 80% of its assets in bonds and related instruments. Holdings can include mortgage-backed securities, corporate bonds, loans, U.S. government securities and foreign government debt, according to the prospectus.
WMSB can use options, credit default swaps, interest rate futures and foreign currency instruments, the document says.
The new ETF charges total annual fund operating expenses after fee waivers and expense reimbursements of 0.50%. The expense limitation agreement runs through September 30, 2026, according to the prospectus.
The Omaha, Nebraska-based firm introduced the Weitz Core Plus Bond ETF (WCPB ) earlier this year and also manages the Core Plus Income Fund (WCPBX) and Short Duration Income Fund (WEFIX), according to the release.
Northern Lights Distributors, LLC serves as distributor for WMSB and WCPB, according to the release.
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